Supply chain management

Question 1

Definitions

Answer 1

-Managing linkages in the value chain
-By examining potential linkages with suppliers and understanding supplier costs it might be possible for the business to change its activites to reduce supplier costs

-For example cost generating activities are detremined by the order parameters. however the buyer can only reduce the costs if it understands how the costs are generated in the supplying organisations.

-more than 60% of the total costs account for supplier costs , so it h become very imprtant to manage overall costs. To do this some businesses have established stratgic partnerships with suppliers.